As explained in other articles, bettors play against each other, not against the house. And the winners receive the losing bettors' stakes. In the previous tutorial about Parimutuel betting with cryptocurrencies, we were giving examples assuming that all the players use the same currency: Bitcoin. In reality, we accept many altcoins as well, as we understand that Bitcoin may require to pay too costly network fees for each deposited bet.
Now, does this make things complicated? You may ask: am i playing against players that use different currencies than the mine? Is any currency conversions needed?
The answer is no: you are not playing against users with different currencies than the one you are using, and no conversions are made. You actually are playing only against the players that used the same currency as yours, and you will win the stakes placed by the losing bettors that used the same currency. So if you bet with Bitcoin, you can win the losing stakes only from the bettors who used Bitcoin.
In other words, there are separated betting pools that do not affect each other: one pool is for the players using Bitcoin , another one for bettors that use Litecoin, and so on. As you can see from the image below, the players using Bitcoin play together in the Bitcoin betting pool, while the Litecoin players are in the Litecoin betting pool. ( For simplicity we omitted other currencies we support, like Dash). Each player in the image made a prediction about the event outcome, which can be YES or NO (example: "Will Manchester Utd. beat Liverpool next Sunday?")
Now suppose the outcome of the event is decided, and it is YES. The winnings are distributed to the players that chose YES, and the winners receive the stake from the losing participants that are in the same pool
We wanted to explain this with very simple words, as we understand that pool betting ( parimutuel ) is still not so popular nor easy to understand deeply , and we are also adding an additional feature to it: multi-curency support. At first sight that may seem to complicate things even further, but in reality everything is like regular pool betting, just with multiple independent pools, one for each currency. If you have any doubts or suggestions, feel free to write us.